Valuing AMEX Membership Rewards Points - The Definitive New Zealand Guide
While Air New Zealand Airpoints Dollars are the most popular rewards card currency, we look at how AMEX points can be used through partner transfers, booking travel directly, getting statement credit or choosing store vouchers.
Updated 19 May 2023
Summary:
Our guide covers the following:
X
X
Value summary:
Overall, our estimated values per point are as follows:
Summary:
- AMEX cardholders earn "Membership Rewards points" ("points") every time they spend on the AMEX Gold Rewards Credit Card, AMEX Platinum Card and other cards, earning up to 2 points for every $1 spent. A handful of other cards earn 1 point for every $1 spent.
- Once you've accumulated points, the Membership Rewards program offers many ways to redeem them. However, the value varies depending on how you redeem them. Some awards offer excellent value for money while others are not as rewarding.
- Our guide explains where good value is found and where poor value can be avoided. We have published this guide to make the Membership Rewards program easier to understand so you can better evaluate whether it's right for you. While the American Express Platinum and Gold cards outperform the banks when it comes to rewards, they're not for everyone.
Our guide covers the following:
X
X
Value summary:
- Overall, if you transfer Membership Rewards points to an airline partner program, the value of a point can be as high as 2 cents. For example, if you transfer them to Air New Zealand Airpoints, 150 Membership Rewards points = 1 Airpoints Dollar, which means each point is worth around 0.67 cents – a big difference. But if if you redeem points on statement credit or AMEX annual fees, the estimated value can be as low as 0.45 cents.
- The value of each point varies; our research is published to clarify how to get the most value and bring transparency for cardholders to extract the highest level of rewards.
Overall, our estimated values per point are as follows:
- Singapore Airlines, Qantas and Cathay Pacific point transfers:
- Emirates point transfers
- Malaysia Airlines point transfers
- Virgin Australia point transfers:
- Air New Zealand transfers: 0.67 cents
- AMEX Travel portal: 1 cent (when booking travel through American Express' travel portal).
- Redeeming for statement credit: The value is around 0.45 cents to 0.52 cents (the more you redeem, the better the value).
- Redeeming for AMEX fees (such as card renewals): 0.50 cents (based on the flat rate of 1,000 Membership Rewards points equaling 5 dollars credit).
- Supermarket vouchers (0.625 cents - you have a choice of Countdown and New World)
- Retail vouchers (0.625 cents - Bunnings, Farmers, Westfield, Ballantynes, Harvey Norman, The Warehouse, Torpedo 7
- Petrol (0.625 cents - Z Energy)
- Cinemas (0.625 cents - Event Cinemas and Hoyts)
- Travel Agencies (Flight Centre 0.625 cents, Hello World 0.75 cents)
Why is there such a big difference in point value?
- We don't know the answer, but it most likely concerns convenience. Converting to card credit is easy and in demand, so AMEX arguably requires more points than, for example, redeeming a New World or Z Energy voucher.
- Furthermore, it is easy to use points and book via the AMEX travel portal or apply points to statements for fees or credit. Building up enough points to reach a valuable flight award (with Singapore Airlines in particular) takes time, flexibility and initiative. This means you can get the most for your points if you're prepared to hunt for a deal.
Know This: Given the American Express Gold Card and Platinum Charge Card, both earn 2 points per $1 spent; even the most basic reward still earns around 1% value. However, the sweet spot is spending enough to pay for a business class flight to Asia or Europe from Singapore Airlines. If you can do this, Membership Rewards is a lucrative program that far exceeds anything else offered by any bank-issued credit card or loyalty program.
Points Value When Booking Travel Through the AMEX Travel Portal
The conversion is simple – 10,000 points = $75 of credit, which means each point is worth 0.75 cents.
For example, a $750 flight will cost 100,000 points. This means there's no way to maximise points with AMEX travel – each point is worth the same whether you book a cheap hotel or business class flights – your total travel costs will be deducted in points.
Know This: If you don't have enough points to pay for a booking, the balance can be paid using your American Express Card. A minimum of 1,000 Membership Rewards Points is required per transaction.
Our view: Using points for Amex is an easy way to redeem points for everyday travel at a fixed rate well above the value of redeeming points for a statement credit. It's simple, convenient and fast – you just search, book and use the number of points you want. However, it's not nearly as lucrative as converting points to Singapore Airlines and redeeming them for premium flights.
Know This: If you apply Membership Rewards points during checkout, the entire transaction amount is still billed to your card account (e.g. in NZD). American Express then reverses this cost by crediting the value of redeemed Membership Rewards points. This happens within three business days. For example, if you booked a hotel for $500 and used 40,000 points to cover $300, your card would be billed $500 until a $300 credit is applied within three business days.
For example, a $750 flight will cost 100,000 points. This means there's no way to maximise points with AMEX travel – each point is worth the same whether you book a cheap hotel or business class flights – your total travel costs will be deducted in points.
Know This: If you don't have enough points to pay for a booking, the balance can be paid using your American Express Card. A minimum of 1,000 Membership Rewards Points is required per transaction.
Our view: Using points for Amex is an easy way to redeem points for everyday travel at a fixed rate well above the value of redeeming points for a statement credit. It's simple, convenient and fast – you just search, book and use the number of points you want. However, it's not nearly as lucrative as converting points to Singapore Airlines and redeeming them for premium flights.
Know This: If you apply Membership Rewards points during checkout, the entire transaction amount is still billed to your card account (e.g. in NZD). American Express then reverses this cost by crediting the value of redeemed Membership Rewards points. This happens within three business days. For example, if you booked a hotel for $500 and used 40,000 points to cover $300, your card would be billed $500 until a $300 credit is applied within three business days.
Points Value When Transferring to Airline Frequent Flyer Program Partners
Membership Rewards has several transfer partners, some offering excellent value and some arguably best avoided if you want value.
Air New Zealand Airpoints
Cathay Pacific Asia Miles
2 Membership Rewards points = 1 Asia Mile; Minimum transfer: 500 points; Transfer time: Up to 1 business day
Emirates: 2 Membership Rewards points = 1 Skywards Mile; Minimum transfer: 2000 points; Transfer time: 1 business day
Malaysia Airlines: 2 Membership Rewards points = 1 Enrich Mile; Minimum transfer: 500 points; Transfer time: 10 business days
Qantas Airways: 2 Membership Rewards points = 1 Qantas Point; Minimum transfer: 500 points; Transfer time: Up to 1 business day
Singapore Airlines: 2 Membership Rewards points = 1 KrisFlyer Mile; Minimum transfer: 500 points; Transfer time: Up to 1 business day
Velocity: 2 Membership Rewards points = 1 Velocity Point; Minimum transfer: 2000 points; Transfer time: 1 business day
Table to follow:
Transfer partner
Estimated value
Transfer ratio
Emirates
1.9 cents.
2:1
Know This: Singapore Airlines, XXX and XXX offer the best value, while, arguably, XXX and XXX offer the worst.
Know This: Before transferring points to a partner program, you must research to ensure availability for the dates you want to travel and that taxes and surcharges (added by the airline) must be paid in cash. In addition, it's not uncommon for certain programs to offer excellent value but then limit award availability.
For this reason, we suggest searching for award seat availability on your travel dates and destination before transferring points - you'll likely need to be flexible, especially around the American and European summer months.
Air New Zealand Airpoints
- Transfer Ratio: 150 Membership Rewards points = 1 Airpoints Dollar
- Estimated Value: 0.067 cents per point
- Minimum transfer: 2100 points
- Transfer time: 2 business days
Cathay Pacific Asia Miles
2 Membership Rewards points = 1 Asia Mile; Minimum transfer: 500 points; Transfer time: Up to 1 business day
Emirates: 2 Membership Rewards points = 1 Skywards Mile; Minimum transfer: 2000 points; Transfer time: 1 business day
Malaysia Airlines: 2 Membership Rewards points = 1 Enrich Mile; Minimum transfer: 500 points; Transfer time: 10 business days
Qantas Airways: 2 Membership Rewards points = 1 Qantas Point; Minimum transfer: 500 points; Transfer time: Up to 1 business day
Singapore Airlines: 2 Membership Rewards points = 1 KrisFlyer Mile; Minimum transfer: 500 points; Transfer time: Up to 1 business day
Velocity: 2 Membership Rewards points = 1 Velocity Point; Minimum transfer: 2000 points; Transfer time: 1 business day
Table to follow:
Transfer partner
Estimated value
Transfer ratio
Emirates
1.9 cents.
2:1
Know This: Singapore Airlines, XXX and XXX offer the best value, while, arguably, XXX and XXX offer the worst.
Know This: Before transferring points to a partner program, you must research to ensure availability for the dates you want to travel and that taxes and surcharges (added by the airline) must be paid in cash. In addition, it's not uncommon for certain programs to offer excellent value but then limit award availability.
For this reason, we suggest searching for award seat availability on your travel dates and destination before transferring points - you'll likely need to be flexible, especially around the American and European summer months.
Points Value When Converting Points to Hotel Program Points
Hotel Programs
https://www.americanexpress.com/en-nz/rewards/membership-rewards/travel/hotels?currenttravelproducttype=Hotel
https://www.americanexpress.com/en-nz/rewards/membership-rewards/travel/hotels?currenttravelproducttype=Hotel
Points Value When Converting Points to Dollars for Credit on Your Card
This is a simple way to redeem points, although the value is lower than other options. However, the more points you convert in one transaction, the higher the value of the points given and AMEX applies a bonus as outlined on their website.
Credit |
Points Required |
Value Per Point |
$25 |
5,500 |
0.45 cents |
$50 |
11,000 |
0.45 cents |
$100 |
22,000 |
0.45 cents |
$250 |
52,000 |
0.48 cents |
$500 |
104,000 |
0.48 cents |
$1,000 |
192,000 |
0.52 cents |
Our view: The conversion of points to credit is simple, fast and convenient and is a true cash saving that is arguably valuable if you don't want to redeem any awards. While much better value is found elsewhere, card credit has its uses, and with popular AMEX cards earning 2 points for every $1 spent, the 'cashback' rate is around 0.9 to 1 cent (or 0.9% to 1% of spend).
Points Value When Converting Points for Vouchers, Gift Cards and Other Rewards:
AMEX offers a range of partner vouchers, including supermarkets, retailers, petrol, cinemas and travel agencies.
The value is the same regardless of how many points you transfer, but the rewards are fixed amounts (e.g. $30, $50 and $100 vouchers). The options are:
The value is the same regardless of how many points you transfer, but the rewards are fixed amounts (e.g. $30, $50 and $100 vouchers). The options are:
- Supermarket vouchers (0.625 cents - Countdown and New World)
- Retail vouchers (0.625 cents - Bunnings, Farmers, Westfield, Ballantynes, Harvey Norman, The Warehouse, Torpedo 7)
- Petrol (0.625 cents - Z Energy)
- Cinemas (0.625 cents - Event Cinemas and Hoyts)
- Travel Agencies (Flight Centre 0.625 cents, Hello World 0.75 cents)
Cards that earn American Express Membership Rewards Points
Highest Earning:
|
The American Express Gold Reward Card
Earn rate: $1 spent = 2 point More details: The Gold Reward Card |
|
The Platinum Card
Earn rate: $1 spent = 2 point More details: The Platinum Card |
|
The Platinum Membership Rewards Credit Card
Earn rate: $1 spent = 2 point More details: The Platinum Membership Rewards Credit Card |
Lowest Earning:
|
|
|
The American Express Gold Credit Card
Earn rate: $1 spent = 1 point More details: The Gold Credit Card |
|
The American Express Blue Credit Card
Earn rate: $1 spent = 1 point More details: The Blue Credit Card |
How did we determine our AMEX points value?
We have published our estimated points value to help New Zealand Membership Rewards customers understand the value of their points. In doing so, our estimates make several assumptions:
The Value of AMEX Points - Our Conclusion:
The current value of one Amex point is between around 0.5 cents (when used for statement credit) to 2 cents (when transferred to certain airline partners and redeemed for business class flights).
Not all airline transfer partners offer the same value – Singapore Airlines and XXX offer value, whereas XXX and XXX do not.
If maximising AMEX points value sounds too complicated, you can always redeem them for supermarket vouchers, petrol vouchers, credit card annual fee discounts or even a statement credit.
+ Walk through an example of 100,000 points and what you can do with it (show spreadsheet and value it etc., then make XLS downloadable).
+ page of testimonials (for reference and to support anyone asking about AMEX)
- One dollar of the voucher (e.g. New World, Air New Zealand Airpoint or petrol voucher) equates to one dollar.
- For partner airline transfers, value is found in business and first class flights, and we assume seats to be available. We have used year-round advance purchase business class airfares to London as a value basepoint.
The Value of AMEX Points - Our Conclusion:
The current value of one Amex point is between around 0.5 cents (when used for statement credit) to 2 cents (when transferred to certain airline partners and redeemed for business class flights).
Not all airline transfer partners offer the same value – Singapore Airlines and XXX offer value, whereas XXX and XXX do not.
If maximising AMEX points value sounds too complicated, you can always redeem them for supermarket vouchers, petrol vouchers, credit card annual fee discounts or even a statement credit.
+ Walk through an example of 100,000 points and what you can do with it (show spreadsheet and value it etc., then make XLS downloadable).
+ page of testimonials (for reference and to support anyone asking about AMEX)
Related guides:
- RewardPay Review (a service which lets you use an AMEX card to pay IRD and ACC bills)
